ChoicePoint Second-Quarter Profit drops to $34.9 Million
ChoicePoint Inc.'s profit fell 4.1 percent in the second quarter, following about $6 million in charges related to a data breach, restructuring and stock options. The Alpharetta, GA-based identification and credential verification services provider had net income of $34.9 million on $240.8 million in revenue in the second quarter compared with net income of $36.4 million on $227.4 million in revenue in the second quarter of 2005.
The results for the second quarter that ended June 30 include $1.8 million of asset impairment, severance and lease abandonment costs, primarily associated with the consolidation of certain technology platforms, $3.1 million in stock option expenses for specific costs related to a data breach by identity thieves in February 2005 and $1 million for legal expenses and other professional fees related to the data breach.
Earlier this month, ChoicePoint reported plans to sell its direct marketing, forensic DNA and shareholder services businesses following a strategic review. ChoicePoint also announced two acquisitions in the insurance industry, which included Insuratec Inc. and ePolicy Inc.
Through six months, the company had net income of $65.5 million on $476.8 million in revenue, compared with net income of $73.4 million on $450.9 million in revenue in the same period of 2005.
Based on recent business and economic trends, ChoicePoint expects 2006 full year internal revenue growth from continuing operations to be in the range of 5 to 7 percent, with improving trends in the second half of 2006.
Including the impact of acquisitions, total revenue growth is expected to be in the range of 6 to 8 percent for the full year 2006.